Cullumber's, Inc. has provided you with the following financial information: Budgeted Actual Sales Quantity 8,500 8,700 Sales price per unit $6.00 $5.75 Variable product cost per unit 2.00 2.25 Selling expense (fixed) 5,500 8,500 Administrative expense (fixed) 17,500 16,500 Income tax expense 4,300 4,500 Prepare a flexible budget. CULLUMBER'S, INC. Flexible Budget $ $
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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